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Thinking about passive income? You may need to think again.

Most people love the idea of adding ‘passive’ income to their portfolio of money making ideas but are unsure about how realistic it is.

Is it too good to be true?

Have all the passive income opportunities been taken?
 


 
The prospect of money trickling into your bank account while you sleep is up there with winning the lottery. Difference is, to win the lottery you can only do two things- 1) buy a ticket 2) hope! With passive income, the power is in your hands and the options are infinite.
 
So why is it so hard to get off the ground? Why isn’t everybody sipping pina coladas on the beach as their smart phone sings out every time a deposit is made?
 

Top reasons why your passive income isn’t getting off the ground- and what to do about it


 

Mistake #1 Focusing on what you want to create not what others want to buy

Coming up with ideas for a product often isn’t the problem- it’s coming up with an idea that someone else will want. It’s a huge misconception that just because you want to do it, others will want to buy it. Generally, they don’t.
 
Our advice?
Do your market research. Your idea may be appealing to you, but that isn’t really the point. It needs to appeal to the people holding the credit cards. Find ONE problem that you can solve for ONE group of people. You need to solve that problem so well that customers will be willing to part with cash to access what you have to offer.
 
 

Mistake #2 Creating an all singing all dancing product

The more excited we get about our idea the more carried away we can get. We start to plan out time consuming and labour intensive schemes which involve forums and widgets, interactive screens and complex payment gateways.
 
Our advice?
Keep things simple. You need to put in the least amount of time in as possible on actual product design until you know there are people interested in buying what you have to offer. Focus on how you will market the thing before you create it.
 

making money

 

Mistake #3 Building it with the expectation that they will come

When it comes to your offering it is worth considering ways you can avoid putting too much effort or money into design or production until you have orders.
 
Our advice?
Either do a pre-order or let people know that there will be a time delay until it gets delivered. Don’t wait to make it perfect before you release it, start marketing it early.
 
 

Mistake #4 Thinking this is a quick way to make lots of money

If you are poised to jack in your job because you have a great passive income idea think again. Passive income is often a very slow burner. The great news is that if you can sell a handful of whatever it is you are offering, you can sell more. But actually pulling this off is a time consuming process. The upside of passive income is that the work you do today will pay you again and again and again.
 

Example: In the summer of 2010 we spent a little over a week designing the site situationaljudgementtest.com and a product. By the end of that year the sales we had made meant that we got paid about $40 a day for that work. The sales that followed meant that by the end of the next year that figure had trebled. Over the last 12 months that day rate has increased to $320 for that work. Next year it will be higher again.

 
Our advice?
Aim for smaller markets; they might not make you a fortune but a few of these sites can add a decent amount of cash to your bottom line. Passive income streams work best when you are playing a long game. For now, just make sure it’s not the only game you are playing.
 
 
If you are interested in this topic and want to know more you might be interested in our 180 days to your office in the beach program. The resource ‘Opening the door to passive income- smart strategies for creating online products’ covers:

  • What exactly can I offer?
  • How do I sell my product?
  • How can I get organic traffic to my site?
  • How can I get other traffic to my site?


Plus we explain some behind the scenes details on how we have successfully built up our own passive income business!
 

What is your passive income dream?

 

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9 Responses to “Thinking about passive income? You may need to think again.”

  1. Hi guys, I liked this article so much because I believe I have made all the mistakes mentioned here… (not that is a good thing) and the more I read about it, the harder the palm face I want to plant on myself.

    As you mentioned small sites and smaller markets, you don’t have to spend an awful lot of time maintaining those sites that you build?

    Are they constantly being updated or are just they some sort of a static “money making muse” like Tim Ferriss describes on his 4HWW book?

    Anyway, keep up the great work guys and AWESOME pictures from the French Polynesia!

    I was telling my girlfriend yesterday all about your pictures in that place (including the coffee table, lobsters, etc) and she told me it would be super cool but she also asked what to do in case of a tsunami? Hahaha I’m still laughing from that question!

    Have a great time and keep the pics coming on! ;-)

    Sergio
    Sergio Felix recently posted..Easy Actionable YouTube Vlogging Ideas For Marketers

     
    • hehe, don’t worry, how do you think we got to write that article?

      We have a VA to take care of the niche sites- it’s a fair amount of work getting it all set up and someone trained up to take care of it for you but it can run really well after that. The ‘passive’ element is in the routine stuff, and if you want to do upgrades you can focus your energy on the bits where you can really add value. To be honest we have left our main site alone for almost two years now where its brought in steady cash. I’m ready to re-look at it now, I just need to find the time between all our other stuff!

      I’m a little embarrassed to say the Tsunami question crossed my mind. i mentioned it to Chris- he laughed too!

      So glad you like the pictures- there are so many stunning scenes here, we must have taken 300 photos in two days! Don’t worry, we won’t post them all.

      Great to hear from you,
      Hannah

       
      • Hannah and Chris
      • Reply
  2. Yes, You are absolutely choosing the right plans.Before you step into the business world you need some serious Market Research. But only the research is not going to help you alone it has to be implemented properly with positive frame of mind and a lot of hard work too.

     
    • victor
    • Reply
    • True Victor, easy to overlook those important bits!

       
      • Hannah and Chris
      • Reply
  3. The only truly passive income success I’ve had so far is that I now have my money invested very well. I finally bit the bullet and asked a family member for investment guidance. I felt embarrassed doing it, but it’s working out great.
    30Traveler recently posted..Top Ten Ways to Save Money When Visiting New York City

     
    • Interesting! Care to share your investment secrets?

       
      • Hannah and Chris
      • Reply
  4. Some good advice here. My biggest success generating passive income was by making a few iPhone apps. But even with that, you have to make something really useful to people or it won’t get noticed.
    Ryan recently posted..How to Get a Thai Driver’s License – And Why You Should

     

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